New Jersey Demonstrates Quarterly Home Price Increases

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According to the New Jersey  Association of Realtors (NJAR) CEO Jarrod C. Grasso, "For the second quarter of 2011, New Jersey's metro areas held their own in terms of median home prices, with all areas demonstrating a quarterly price increase".

Two bright spots that displayed increases from the second quarter of 2010 were Wayne, N.J./New York and Atlantic City, N.J.  Despite minor annual price declines in the other Garden State metros, all of them outperformed the national price decrease of 10.2 percent.  Considering the volume of distressed properties on the market right now and those still in the judicial pipeline, New Jersey's prices have remained stronger than expected.  Prices should strengthen even further upon clearing of this surplus."

 The Garden State's drop in existing home sales was significantly higher than the national average, but so was that in New York, Pennsylvania and the Northeast region in general.  With numerous factors outside of the industry affecting consumer confidence, they are in turn affecting home sales.  These factors include unemployment, foreclosure volume, and tight lending requirements.  Another important point to consider in the year-over-year analysis is that last year during this period, potential buyers were timing their purchases to obtain the federal home buyer tax credit.

After their expiration in September, Washington is considering discontinuation of the high FHA, Fannie Mae and Freddie Mac loan limits passed as part of the 2009 stimulus.  For financially capable buyers, the ability to obtain a larger loan from a government sponsored enterprise opens up more options and is one more positive reason to consider entering today's market.  For a high-cost state like New Jersey, these lower loan limits would make it more difficult for families to obtain the mortgages necessary to buy a home here.

Grasso further commented, "With an already fragile industry at the whim of external factors, now is not the time for lawmakers to impede the ability of credit-worthy buyers to enter the market. In addition, the National Association of Realtors estimates that one job is generated for every two home sales.  It is time to put housing first."

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